Analysis

ACOs and Industry: A Collaboration for Value Conference

March 26-27, 2015 | Minneapolis, MN

Need straight-talk DIRECTLY from Accountable Care Organization (ACO) execs? The healthcare marketplace is changing, and it’s impacting the way you do business. To adapt quickly and succeed, you need insight and understanding DIRECTLY from healthcare leaders on the frontline of these changes.

Please join CMR Institute for its 3rd annual ACOs and Industry: A Collaboration for Value Conference on March 26-27 in Minneapolis, MN. Here, you will have a unique opportunity to learn from and network with CEOs and other high-level execs from 10 ACOs nationwide including:

• Allina Health (MN)
• Renown Health (NV)
• Mount Sinai Care (NY)
• Fairview Pharmacy Service (MN)
• HealthPartners (MN)
• North Memorial (MN)
• Keystone (NJ)
• Martin Health System (FL)
• Geisinger (NJ)
• Carilion Clinic (VA)

Don’t miss this unique opportunity to strengthen your ACO alliances and learn how to:

• Transform sales, marketing, and training strategies
• Align your products to the value-based care model
• Generate solutions alongside ACO executives
• Learn about outcomes-based contracting
• Understand the disease-specific products, tools, programs, and services ACOs need

CMR Institute is offering Drug Channels readers an exclusive $200 discount. Use code DRUG200 at registration.

Register and learn more at http://www.acocollaboration.org

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The content of Sponsored Posts does not necessarily reflect the views of Pembroke Consulting, Inc., Drug Channels, or any of its employees.

This morning, Rite Aid announced the surprise acquisition of privately-held pharmacy benefit manager (PBM) EnvisionRx. Read the press release.

With this transformative deal, Rite Aid is now explicitly building a mini-CVS Health. That’s not necessarily a bad thing.

Below, I highlight a few interesting tidbits about EnvisionRx, offer some initial thoughts on the transaction, and provide some preliminary prognostications. Based on what I've heard so far, this deal looks to be a big win for Rite Aid.

Question to ponder: Will this deal trigger a new partnership between Express Scripts and Walgreens Boots Alliance?

Last week, McKesson reported big revenue gains for its distribution business segment—increases that have been driven partly by booming sales of new hepatitis C drugs. Read the press release.

However, McKesson’s disclosures suggest that the company barely broke even—and may have even lost money—by selling such drugs as Gilead Science’s Sovaldi and Johnson & Johnson’s Olysio.

Three key factors—outlined below—are driving this profit squeeze. More broadly, the hepatitis C situation highlights wholesalers’ growing risks for pharmacy-dispensed specialty drugs.

Read on and see if you agree with my slap and tickle math.

GPO Membership Eligibility and Class of Trade Maintenance

March 30-31, 2015 – Philadelphia, PA

www.cbinet.com/gpocot

CBI’s GPO Membership Eligibility and Class of Trade Maintenance conference allows you to join key stakeholders focused on providing best practices to mitigate membership compliance risk, ensure accuracy in Class of Trade designations, and streamline data processes.

Join us in March and gain insight on pressing issues from experts representing Amerinet, Arbor Pharmaceuticals, Cardinal Health Specialty Solutions, Chiesi USA Inc., Covance Market Access Services Inc., Essential Healthcare Management, Henry Schein, McKesson Corp, Pfizer Inc., Porzio Bromberg & Newman PC and more!

Key Reasons to Attend:

• Explore the impact of membership challenges on chargeback errors and discrepancies
• Develop strategies to standardize and automate membership validation procedures
• Enhance the accuracy and integrity of inbound membership data
• Optimize PHS membership management to streamline 340B
• Evaluate where manufacturer and GPO forms of verification coincide
• Gain insight into how various stakeholders define membership and determine COT

CBI is offering Drug Channels readers an exclusive $300 discount when you register by Friday, March 27th. Mention promo code GPO430.

*Offer valid through March 27, 2015, applies to standard rates only and may not be combined with other offers, category rates, promotions or applied to a current registration.

Today’s timely guest post comes from Pamela Morris, Director, Syndicated Research, Zitter Health Insights.

She shares survey data from Hepatitis C and Diabetes patients. The data were gathered immediately after the patients visited their doctor, and include such information as the patients’ own disease research, conversations with their doctors, and intentions regarding treatment.

As Pamela explains, higher deductibles force patients to make tough healthcare choices. What motivates these choices, and how can one capture that information?

The answers can be found in the patient data available from Consumer Connect, Zitter Health Insight’s subscription service. To learn more about Consumer Connect, visit the Zitter Health Insights website or email Michala Jeberg.

This week, Gilead Sciences reported blockbuster 2014 results for its hepatitis C products Sovaldi and Harvoni. Read the press release. However, Wall Street freaked out when Gilead disclosed that its payer discounts are much larger than many people had assumed—more than 50% off list in some cases. (See the numbers below).

These unexpectedly large price cuts provide more evidence that competition gives payers enormous power, even when purchasing differentiated, highly valuable therapies. Imagine what will happen as biosimilar versions of top-selling biological drugs hit the market over the next few years.

Sorry to be the bearer of bad news. But for the manufacturers developing biosimilars and those defending biological products, it’s probably time to lower revenue projections.

For 2014, we estimate that retail, mail, and specialty pharmacies dispensed about $78 billion in specialty pharmaceuticals.

How many pharmacies dispensed these drugs? Surprisingly, we still can’t definitively answer this question, as I explain below. To measure specialty pharmacy growth, I worked with a renowned mathematician (pictured at right) to crunch data from URAC, an independent accreditation company.

As the chart below shows, the number of accredited specialty pharmacies is still booming. As of late December 2014, 89 companies with 151 specialty pharmacy locations had achieved “Full Accreditation.” An additional 99 companies are “In Process” and are likely to be accredited in 2015.

11th Life Sciences Accounting & Reporting Congress

March 16-18 | Philadelphia, PA

www.cbinet.com/accounting

The world’s largest and longest running event for finance and accounting professionals in the life sciences industry is ramping up for the most in-depth and impactful event yet. The Accounting & Reporting Congress is the life science community’s gold standard conference for finance, accounting and reporting professionals, offering industry-specific CPE content.

As the industry undergoes rapid and systemic evolution (due to healthcare reform, M&A, pricing mandates, wholesaler/pharmacy channel evolution, weakened IP, global expansion, R&D imperatives, cost containment initiatives and increased regulatory scrutiny), CFOs, Controllers and Senior Accounting/Finance professionals are the corporate stewards for new business and growth opportunities. This event presents new revenue models and minimizes risk. Visit www.cbinet.com/accounting for more information.

Drug Channels readers will save $200 off of the standard registration rate when they use code KMP386.*

*Cannot be combined with other offers or used towards a current registration. Cannot be combined with special category rates. Other restrictions may apply.

I am pleased to announce the availability of our new report: the 2014-15 Economic Report on Retail, Mail, and Specialty Pharmacies. We’re offering special discounts if you order before February 15, 2015.

This year’s report—our sixth edition—has been completely updated, revised, reorganized, and expanded. It contains the latest financial and industry data, along with detailed information about the strategies and market positions of the largest public companies—CVS Health, Diplomat, Express Scripts, Rite Aid, Walgreens Boots Alliance, Walmart, and others.

We've also added an all-new chapter on specialty drugs and specialty pharmacies.

If you enjoy Drug Channels, then you'll love this report. (Fair warning: the report has 0.0% pop culture content.)

Read on for more details, check out a Free Overview of the Report, or just download the report today. Enjoy!

Winter has arrived at our worldwide headquarters. While you are snowed in, please enjoy this month’s hand-picked artisanal selection of articles from the Drug Channels universe.

• Meet Ornella Barra, the Walgreens Alliance Boots Exec Joining AmerisourceBergen’s Board

• Express Scripts Preannounces its Next Specialty Drug Formulary Battle

• A Nonprofit 340B Hospital Sues Its Poorest Patients: The Unsafety Net?

Plus, The Onion publishes an important anti-vaccination article. It’s your must-forward article of the week!

P.S. Follow @Drug Channels for my daily updates on noteworthy news and analysis.